Aon Airline Insurance Market Outlook 2010

Prices set to continue to rise in 2010, but the rate of increase should slow

While lead hull and liability prices rose by 20% on average during 2009, total premium will not have been high enough to cover the significant claims that occurred during the year. As a result, 2009 will have been a third consecutive loss making year for airline underwriters.

That said, the price rises should slow in 2010 as a result of the more benign economic conditions and the fact that, despite the high level for claims in 2009, the airline industry’s loss history has been relatively good over the last five years.

This is the key finding of Aon's Airline Insurance Market Outlook 2010 report, which brings together the analysis that we made in 2009 and looks at how it will impact market direction in 2010.